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Mar 23rd, 2018: Tariffs Spark Flight to Safe Havens

Morning Report: 07.00 London

This morning, global markets are on the back foot as money flows into safe havens. Asian markets have been spooked by Trump’s tariff plans amid further political uncertainty as Trump names the new National Security Advisor.

The yen is in demand, with the USD/JPY hitting its lowest level since 2016. Away from the USD/JPY other yen pairs are also lower, but these losses come after hefty losses yesterday. The AUD/JPY’s losses were notable yesterday in particular.

After a tentative recovery yesterday, the US Dollar index is on the back foot once again. The EUR/USD is leading the gainers, with the GBP/USD edging higher again. The euro has the edge over the pound, with the EUR/GBP finishing higher following a volatile session yesterday. European PMI data came in lower than expected, while UK retail sales impressed.

The AUD/USD is also attempting another recovery after yesterday wiped out Wednesday’s gains.

Gold continues to make gains as the dollar remains weak.

Coming up today

Today, we have Canadian CPI and retail sales at 12.30.

Also at 12.30, we have US core durable goods.

MPC member Vlieghe speaks at the same time.

Trade Idea

The yen is back in control as traders seek out safe harbours. Meanwhile Trump’s trade tariffs are wreaking havoc across Asia.

The AUD/JPY has been weak, but there could be further weakness from here.

Mar 23rd, 2018: Tariffs Spark Flight to Safe Havens

A good way to play this is a LOWER trade predicting that the AUD/JPY closes below 80.50 in 14 days for a potential return of 120%.

Mar 23rd, 2018: Tariffs Spark Flight to Safe Havens